Why Bankruptcy Credit Counseling From A Legal Professional Is Essential

The condition of the economy has many people facing tough decisions regarding their financial affairs. With the high rates of unemployment and bleak outlook for the creation of new jobs, many unemployed individuals are finding themselves uncertain of how they are going to pay off their obligations. Even some of those who have remained gainfully employed have been affected by the economic downturn; whether their salary was cut, hours were slashed or the bonuses they once relied on were discontinued, paying their financial obligations has become harder.

Now, more than ever, people are turning to the option of filing bankruptcy in order to get some relief. While there has always been a stigma placed upon it, as if filing is taking the easy way out, there is no shame in one admitting that they are in over their head. Sometimes people get into agreements and monetary commitments based on their current income, then lose their job or experience a major setback which changes the outlook of their financial affairs.

Anyone thinking about filing should consult a lawyer who specializes in this practice. Bankruptcy consultations are free, and give an individual all of the information they need in order to determine what protections they have. Although one can search the internet and even file online on their own without the help of an attorney, obtaining a free consultation will help make sense out of the complex laws and stipulations which surround filing. Only a lawyer who specializes in this field can give an analysis of which chapter will fit best for each personal situation. In addition, a legal professional can even advise against filing at all in cases where it would affect property or possessions one wants to protect.

This is where bankruptcy credit counseling comes in as an important step required before a case can be filed in court, and not necessarily because an individual abused their credit. First of all, there are times that as a result of bankruptcy credit counseling, people realize that while filing was a viable option, there were other things that they could do instead to improve their financial standing. For those who aren’t even behind on payments, this counseling can help point out issues that may arise in the future if their budget is overstretched. In cases where a person has in fact abused credit, bankruptcy credit counseling teaches them how to make a modest budget and make smart monetary decisions so that they avoid falling behind in the future.

All in all, anyone who feels that they are struggling to repay their obligations or actually are behind should get a free bankruptcy consultation with a lawyer. Not only will it cost them nothing, but the initial bankruptcy credit counseling from the legal professional will help one determine whether or not they should file, and which chapter would be most beneficial. Once a determination has been made to file, formal bankruptcy credit counseling will give an individual knowledge and tools to use in the future for sound monetary decisions and investments.